1.Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 88,000 units were started, and 65% completed at months end. Total costs were $95,000 for material and $136,000 for conversion. The cost per equivalent unit of conversion is __________.

2.Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 27,700 units were started, and 12,000 completed. Ending work in process is 70% complete.The equivalent units for conversion costs is_______

3.Train Company makes widgets, and each widget requires 4 pounds of material at $5 per pound. 600 and 800 widgets will be built in March and April, respectively. Train keeps material on hand at 25% of the next month's production needs. How much is the total material cost for March?

4.Anticipated unit sales for January are 5,400; sales for February are 4,900; and sales for March are 5,200. Finished goods are consistently maintained at 70% of the following month's sales. If units cost $15 each to produce, how much is February's total cost of production?

5.Total production of 1,000 units of finished goods required 4,250 actual hours at $14.70 per hour. The standard is 4.2 hours per unit of finished goods, at a standard rate of $15 per hour. Which of the following statements is true?

a.The labor efficiency variance is $750 favorable

b.The labor rate variance is $3,910 unfavorable

c.The total labor variance is $525 unfavorable

d.None of these

e.The labor rate variance is $1,275 favorable

6.If beginning work in process was 850 units, 1,100 additional units were put into production, and ending work in process was 675 units, how many units were completed?

7.Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 27,700 units were started, and 12,000 units completed. Ending work in process is 70% complete.The equivalent units for materials are______

8.Assume that actual overhead consisted of $37,500 for indirect labor, $26,000 for indirect material, and $18,000 for depreciation of factory equipment. Based on the preset rates, $79,900 of overhead was applied to work in process. Which of the following statements is true?

a.Overhead is under applied

b.This is viewed as an unfavorable situation

c.All of these

d.None of these

9.The contract interest rate for bonds ___________.

a.Has no relation to the cash flow associated with a particular bond

b.Is led than the effective interest rate when bonds are issued at a premium

c.None of these

d.Will fluctuate over the life of a bond

e.Must equal the effective interest rate

10. Train Corporation issued $500,000 of 8%, 15-year bonds on April 1, 2017, at 101. Interest is paid on April 1 and October 1. The proper entry to record issuance of the bonds includes a debit to Cash for ____________.

11. Which of the following statements about treasury stock is true?

A)

Excess of the sales price over cost should be credited to retained earnings.

B)

Gains are not recorded on treasury stock transactions but losses are.

C)

Losses on treasury stock transactions are recorded in income.

D)

Purchasing treasury stock causes stockholders equity to increase.

E)

Purchasing treasury stock requires a debit to the common stock account.

12. Train Company has 200,000 shares of common stock and 200,000 shares of Treasury stock. On April 15, the board declared a $.55 dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15. The proper journal entry for Train Company on May 15 does not include ____________.

13. In an effort to concentrate its resources in more profitable areas. Train Corporation recently sold its family cookbook segment but retained its restaurant segment.The disposal constitutes______________.

14. Train Corporation has 80,000, 5%, $100 par preferred shares outstanding. The preferred stock was originally issued at 102.5. The current dividend has been fully paid. Total stockholders' stock equity is $22,750,000. The common stock equity is

15. Train Company's balance sheet included cash $4,275,839, accounts receivable $14,283,289, inventories $9,847,240, prepaid expenses $1,987,008, land of $55,000,000 accounts payable $8,764,512, and accrued expenses $7,124,572. Working capital is

16. Selected information for 2017 is:

cost of goods sold, $28,200,000

2016 ending inventory, $3,400,000

2016 ending inventory $3,650,000

Net sales $70,200,000

2016 ending receivables, $3,390,000

2017 ending receivables, $3,930,000

Net income, $3,520,000

Assuming a 360-day year, what was the inventory turnover ratio for 2017?

17. On the schedule of cost of goods manufactured:

A)

Ending work-in-process will necessarily increase if total manufacturing costs increase.

B)

Factory overhead plus beginning work-in-process equals manufacturing costs

C)

Cost of goods manufactured equals value of total manufacturing costs

D)

Beginning work-in-process plus direct materials used equals manufacturing costs

E)

None of these

18. Which costing method seems ideally suited to the production of homogenous products in continuous throughput?

19. Train Company uses a job order cost system and applies overhead based on estimated rates for work in their factory. The overhead application rate is based on total estimated overhead costs of $2,587,500 and direct labor hours of 57,500. For job 836, direct labor hours were 1,410 for the month of December. What is the appropriate journal entry for job 836 for the month of December?

20. For job 1838, there were 1,000 direct labor hours, and actual overhead was $500 for depreciation and $1,400 for indirect labor. Overhead is applied at $2 per direct labor hour. Which account should be debited for $2,000?

21. On December 31, 2017, Raleigh Corp had the following balances (all balances are normal):

Raleigh Corporation

Equity Section of Balance Sheet as of December 31, 2017

Preferred Stock ($40 par value, 5% noncumulative, 100,000 shares authorized, 30,000 shares issued and outstanding

$1,200,000

Common stock ($2 par value, 4,000,000 shares authorized, 950,000 shares issued and outstanding)

1,900,000

Paid-in-Capital in Excess of par, (Common)

650,000

Retained Earnings

1,420,000

Journal entries for the transaction listed below for Raleigh Corporation:

a.On January1, Raleigh Corp. declared a 9% stock dividend on its common stock when the market value of the common stock was $21.25 per share. Stock dividends were distributed in January 31 to shareholders as of January 25.

b.On February 15, Raleigh Corp. acquired 8,500 shares of common stock for $24 each

c.On March 31, Raleigh Corp. reissued 2,250 shares of treasury stock for $19 each.

d.On October 1, Raleigh Corp. declared full year dividends for preferred stock $1.40 cash dividends for outstanding common shares.Shareholders dividend were paid on October 15.

Date

Account Title

Debit

Credit

1/1

Account to debit

Amount

Account to credit

Amount

Account to credit

Amount

1/31

Account to debit

Amount

Account to credit

Amount

2/15

Account to debit

Amount

Account to credit

Amount

3/31

Account to debit

Amount

Account to debit

Amount

Account to credit

Amount

7/1

Account to debit

Amount

Account to debit

Amount

Account to credit

Amount

10/1

Account to debit

Amount

Account to credit

Amount

Account to credit

Amount

10/15

Account to debit

Amount

Account to debit

Amount

Account to credit

Amount

22. On January 1, 2017 ABCD Company purchased 80,000 shares of the stock of Rayco, and did obtain significant influence.The investment is intended as a long term investment. The stock was purchased for $475,000 and represents a 30% ownership stake. Rayco made $2,748,572 of net income in 2017, and paid dividends of $155,000.The price of Raycos stock increased from $28 per share at the beginning of the year, to $40 per share at the end of the year.

a.Create the January 1 and December 31 general journal entries for ABCD company.

b.How much should the ABCD company report on the balance sheet for the investment in Rayco at the end of 2017?

Date

Account Title

Debit

Credit

1/1

Account to debit

Amount

Account to credit

Amount

12/31

Account to debit

Amount

Account to credit

Amount

12/31

Account to debit

Amount

Account to credit

Amount

Stock Investments Accounts Balance 12/31/17

Amount

23. The following is selected information form Reliant company for the fiscal years ended December 31, 2017:

1.Reliant company had net income of $682,000

2.Depreciation was $37,000

3.Interest payable increased by $7,000

4.Purchase of equipment was $120,000

5.Accounts receivable decreased by $34,000

6.Bonds payable issued were $50,000

7.Accounts payable increased by $18,000

8.Disposal of equipment for $86,000 resulted in a $7,400 gain

9.Prepaid expense increased by $24,000

10. Dividends of $15,000 were paid to shareholders

11. Cash balance on January 1, 2017 was $225,000

a.What was the Net Cash flow from/for Operating activities?

b.What was the Net Cash flow from/for investing activities?

c.What was the Net Cash flow from/for financing activities?

d.What was the Net Increase (decrease) in cash?

24. RSW Company manufacturing 17,000 units of wheel sets for use in its annual production. Costs are as follows:

Item

Cost

Direct Materials

$45,000

Direct labor

$60,100

Variable manufacturing overhead

62,000

Fixed manufacturing overhead

73,000

Rayco Company has offered to sell RSW 17,000 units of wheel sets for $16 per unit.If RSW accepts the offer some of the facilities presently used to manufacture wheels set be rented to a third party at an annual rental of $32,500.In addition, $45,500 of fixed overhead would be totally eliminated.

Submit an incremental analysis schedule to demonstrate if RSW should accept Rayco offer.

Make

Buy

Additional Rental Income

Amount

Amount

Costs

Direct materials

Amount

Amount

Direct labor

Amount

Amount

Variable manufacturing overhead

Amount

Amount

Fixed manufacturing overhead

Amount

Amount

Purchase cost

Amount

Amount

Total manufacturing cost

Amount

Amount

Should RSW make or buy the wheel sets? Explain.

Enter your response here.

25.ABC had sales of $19,000 (95 units at $200 each). Manufacturing costs consisted of direct labor $2500 direct materials $2,600, variable factory overhead $3600 and fixed factory overhead $800. Selling expenses totaled $4900 ($1200 variable and $3700) and administrative expense totaled $4700 ($1100 variable and $3600 fixed).

Round dollar amount to the nearest cent and include dollar signs and commas. Round unit amounts to two decimal places.

a.What was the break-even points?

b.What is the break-even point in dollars?

c.What is the break-even point in dollars of ABC wants ot achieve $12,000 net income?

1. Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 88,000 units were started, and 65% completed at month's end. Total costs were $95,000 for material and $136,000 for conversion. The cost per equivalent unit of conversion is __________. 2. Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 27,700 units were started, and 12,000 completed. Ending work in process is 70% complete. The equivalent units for conversion costs is_______ 3. Train Company makes widgets, and each widget requires 4 pounds of material at $5 per pound. 600 and 800 widgets will be built in March and April, respectively. Train keeps material on hand at 25% of the next month's production needs. How much is the total material cost for March? 4. Anticipated unit sales for January are 5,400; sales for February are 4,900; and sales for March are 5,200. Finished goods are consistently maintained at 70% of the following month's sales. If units cost $15 each to produce, how much is February's total cost of production? 5. Total production of 1,000 units of finished goods required 4,250 actual hours at $14.70 per hour. The standard is 4.2 hours per unit of finished goods, at a standard rate of $15 per hour. Which of the following statements is true? a. The labor efficiency variance is $750 favorable b. The labor rate variance is $3,910 unfavorable c. The total labor variance is $525 unfavorable d. None of these e. The labor rate variance is $1,275 favorable 6. If beginning work in process was 850 units, 1,100 additional units were put into production, and ending work in process was 675 units, how many units were completed? 7. Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 27,700 units were started, and 12,000 units completed. Ending work in process is 70% complete. The equivalent units for materials are______ 8. Assume that actual overhead consisted of $37,500 for indirect labor, $26,000 for indirect material, and $18,000 for depreciation of factory equipment. Based on the preset rates, $79,900 of overhead was applied to work in process. Which of the following statements is true? a. Overhead is under applied b. This is viewed as an unfavorable situation c. All of these d. None of these 9. The contract interest rate for bonds ___________. a. Has no relation to the cash flow associated with a particular bond b. Is led than the effective interest rate when bonds are issued at a premium c. None of these d. Will fluctuate over the life of a bond e. Must equal the effective interest rate 10. Train Corporation issued $500,000 of 8%, 15-year bonds on April 1, 2017, at 101. Interest is paid on April 1 and October 1. The proper entry to record issuance of the bonds includes a debit to Cash for ____________. 11. Which of the following statements about treasury stock is true? A) Excess of the sales price over cost should be credited to retained earnings. B) Gains are not recorded on treasury stock transactions but losses are. C) Losses on treasury stock transactions are recorded in income. D) Purchasing treasury stock causes stockholders equity to increase. E) Purchasing treasury stock requires a debit to the common stock account. 12. Train Company has 200,000 shares of common stock and 200,000 shares of Treasury stock. On April 15, the board declared a $.55 dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15. The proper journal entry for Train Company on May 15 does not include ____________. 13. In an effort to concentrate its resources in more profitable areas. Train Corporation recently sold its family cookbook segment but retained its restaurant segment. The disposal constitutes______________. 14. Train Corporation has 80,000, 5%, $100 par preferred shares outstanding. The preferred stock was originally issued at 102.5. The current dividend has been fully paid. Total stockholders' stock equity is $22,750,000. The common stock equity is 15. Train Company's balance sheet included cash $4,275,839, accounts receivable $14,283,289, inventories $9,847,240, prepaid expenses $1,987,008, land of $55,000,000 accounts payable $8,764,512, and accrued expenses $7,124,572. Working capital is 16. Selected information for 2017 is: cost of goods sold, $28,200,000 2016 ending inventory, $3,400,000 2016 ending inventory $3,650,000 Net sales $70,200,000 2016 ending receivables, $3,390,000 2017 ending receivables, $3,930,000 Net income, $3,520,000 Assuming a 360-day year, what was the inventory turnover ratio for 2017? 17. On the schedule of cost of goods manufactured: A) Ending work-in-process will necessarily increase if total manufacturing costs increase. B) Factory overhead plus beginning work-in-process equals manufacturing costs C) Cost of goods manufactured equals value of total manufacturing costs D) Beginning work-in-process plus direct materials used equals manufacturing costs E) None of these 18. Which costing method seems ideally suited to the production of homogenous products in continuous throughput? 19. Train Company uses a job order cost system and applies overhead based on estimated rates for work in their factory. The overhead application rate is based on total estimated overhead costs of $2,587,500 and direct labor hours of 57,500. For job 836, direct labor hours were 1,410 for the month of December. What is the appropriate journal entry for job 836 for the month of December? 20. For job 1838, there were 1,000 direct labor hours, and actual overhead was $500 for depreciation and $1,400 for indirect labor. Overhead is applied at $2 per direct labor hour. Which account should be debited for $2,000? 21. On December 31, 2017, Raleigh Corp had the following balances (all balances are normal): Raleigh Corporation Equity Section of Balance Sheet as of December 31, 2017 Preferred Stock ($40 par value, 5% noncumulative, 100,000 shares authorized, 30,000 shares issued and outstanding $1,200,000 Common stock ($2 par value, 4,000,000 shares authorized, 950,000 shares issued and outstanding) 1,900,000 Paid-in-Capital in Excess of par, (Common) 650,000 Retained Earnings 1,420,000 Journal entries for the transaction listed below for Raleigh Corporation: a. On January1, Raleigh Corp. declared a 9% stock dividend on its common stock when the market value of the common stock was $21.25 per share. Stock dividends were distributed in January 31 to shareholders as of January 25. b. On February 15, Raleigh Corp. acquired 8,500 shares of common stock for $24 each c. On March 31, Raleigh Corp. reissued 2,250 shares of treasury stock for $19 each. d. On October 1, Raleigh Corp. declared full year dividends for preferred stock $1.40 cash dividends for outstanding common shares. Shareholders dividend were paid on October 15. Date Account Title 1/1 Account to debit 1/31 Debit Amount Account to credit Amount Account to credit Amount Account to debit Amount Account to credit 2/15 Account to debit Amount Amount Account to credit 3/31 Amount Account to debit Amount Account to debit Amount Account to credit 7/1 Amount Account to debit Amount Account to debit Amount Account to credit 10/1 10/1 5 Credit Account to debit Amount Amount Account to credit Amount Account to credit Amount Account to debit Amount Account to debit Amount Account to credit Amount 22. On January 1, 2017 ABCD Company purchased 80,000 shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long term investment. The stock was purchased for $475,000 and represents a 30% ownership stake. Rayco made $2,748,572 of net income in 2017, and paid dividends of $155,000. The price of Rayco's stock increased from $28 per share at the beginning of the year, to $40 per share at the end of the year. a. Create the January 1 and December 31 general journal entries for ABCD company. b. How much should the ABCD company report on the balance sheet for the investment in Rayco at the end of 2017? Date Account Title 1/1 Account to debit Debit Amount Account to credit 12/31 Account to debit Amount Amount Account to credit 12/31 Account to debit Account to credit Credit Amount Amount Amount Stock Investments Accounts Balance 12/31/17 Date Account Title 1/1 Account to debit Debit Credit Amount Amount 23. The following is selected information form Reliant company for the fiscal years ended December 31, 2017: 1. Reliant company had net income of $682,000 2. Depreciation was $37,000 3. Interest payable increased by $7,000 4. Purchase of equipment was $120,000 5. Accounts receivable decreased by $34,000 6. Bonds payable issued were $50,000 7. Accounts payable increased by $18,000 8. Disposal of equipment for $86,000 resulted in a $7,400 gain 9. Prepaid expense increased by $24,000 10. Dividends of $15,000 were paid to shareholders 11. Cash balance on January 1, 2017 was $225,000 a. What was the Net Cash flow from/for Operating activities? b. What was the Net Cash flow from/for investing activities? c. What was the Net Cash flow from/for financing activities? d. What was the Net Increase (decrease) in cash? 24. RSW Company manufacturing 17,000 units of wheel sets for use in its annual production. Costs are as follows: Item Direct Materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Cost $45,000 $60,100 62,000 73,000 Rayco Company has offered to sell RSW 17,000 units of wheel sets for $16 per unit. If RSW accepts the offer some of the facilities presently used to manufacture wheels set be rented to a third party at an annual rental of $32,500. In addition, $45,500 of fixed overhead would be totally eliminated. Submit an incremental analysis schedule to demonstrate if RSW should accept Rayco offer. Make Buy Amount Amount Direct materials Amount Amount Direct labor Amount Amount Variable manufacturing overhead Amount Amount Fixed manufacturing overhead Amount Amount Purchase cost Amount Amount Amount Amount Additional Rental Income Costs Total manufacturing cost Additional Rental Income Make Buy Amount Amount Should RSW make or buy the wheel sets? Explain. Enter your response here. 25. ABC had sales of $19,000 (95 units at $200 each). Manufacturing costs consisted of direct labor $2500 direct materials $2,600, variable factory overhead $3600 and fixed factory overhead $800. Selling expenses totaled $4900 ($1200 variable and $3700) and administrative expense totaled $4700 ($1100 variable and $3600 fixed). Round dollar amount to the nearest cent and include dollar signs and commas. Round unit amounts to two decimal places. a. What was the break-even points? b. What is the break-even point in dollars? c. What is the break-even point in dollars of ABC wants ot achieve $12,000 net income